Congress slams PM Modi over his appeal to states to reduce VAT on fuel prices

The Congress has been at loggerheads with the centre over the fuel price hikes.

Published on: Apr 27, 2022, 15:41:00 IST

By HT News Desk | Written by Manjiri Sachin Chitre | Edited by Chandrashekar Srinivasan

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Congress leaders slammed prime minister Narendra Modi Wednesday after he appealed to states to reduce VAT, or value added tax, on fuel prices that have exploded over the past weeks. Party leader Pawan Khera claimed the centre 'earned ₹26 lakh crore' from relentless hikes of petrol and diesel prices last year and this - price hikes were suspended in the build-up to the February - and demanded that first central excise rates be further dropped.

Prime Minister Narendra Modi (PM Modi) (HT Photo)

"He (Modi) earned ₹26 lakh crore out of central excise on petrol and diesel. Has he shared it? You didn't give GST share to states on time and then you ask states to further reduce VAT. He should reduce central excise and then ask others to reduce VAT," he was quoted by ANI.

Accusing the centre of evading its duty on the fuel price hike, Congress leader Deepender S Hooda said, "Haryana (where the BJP is in power) has the highest VAT on petrol-diesel. Fuel prices are increased if price rises in international markets but when wheat prices increase internationally, farmers don't get increased MSP on it..." he said.

Also read: 'Reconsider…': Maharashtra deputy CM's plea to centre over gas price hike

Shiv Sena leader Priyanka Chaturvedi also joined the chorus of disapproving voices.

"Making a COVID meeting about politics! The central government has earned 26 lakh crore out of central excise on fuel, increased 18 times even when oil prices hit rock-bottom. The GST share to states still owed... compensation component to states done away with... and now pointing fingers," she tweeted.

The prime minister's appeal on fuel VAT came earlier todat after the conclusion of a video conference with chief ministers that was supposed to be on the uptick in Covid cases in India.

The Congress has been at loggerheads with the centre over the fuel price hikes. March saw the maximum days of hike in prices of petrol and diesel in the country. Congress leader Rahul Gandhi had been taking a dig at PM Modi and the BJP government over the price hike.

Also read: 'Not criticising, just appealing': PM Modi to chief ministers on petrol, diesel tax

"Some states reduced taxes but some states did not give any benefit of this to the people. Due to this, the prices of petrol and diesel in these states continue to remain high. In a way, this is not only injustice to the people of these states but it also has an impact on neighbouring states," the prime minister said, naming opposition-ruled states of Maharashtra, Bengal, Telangana, Andhra Pradesh, Kerala, Jharkhand and Tamil Nadu.

Modi declared that 'by not listening to the central government, the citizens of those states continued to be burdened'.

"I request that what should have been done in November... you should pass on the benefit to the citizens by reducing VAT," he said, referring to the reduction that came just before elections in five states, including the politically key state of Uttar Pradesh.

(With inputs from agencies)

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HT News Desk
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